Earnings Presentation [Company Update]

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VRL Financial Results

Quarter I FY 2015-16

Earnings Presentation

August 08, 2015

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• Certain statements contained in this document may be statements of future expectations and other forward

looking statements that are based on management‘s current view and assumptions and involve known and

unknown risks and uncertainties that could cause actual results performance or events to differ materially

from those expressed or implied in such statements.

•The information contained in this presentation has not been independently verified and no representation or

warranty expressed or implied is made as to and no reliance should be placed on the fairness accuracy

completeness or correctness of this information or opinions contained herein.

•This presentation may contain certain forward looking statements within the meaning of applicable securities

law and regulations. These statements include descriptions regarding the intent belief or current expectations

of the Company or its directors and officers with respect to the results of operations and financial condition of

the Company. Such forward-looking statements are not guarantees of future performance and involve risks

and uncertainties and actual results may differ from those in such forward-looking statements as a result of

various factors and assumptions which the Company believes to be reasonable in light of its operating

experience in recent years. Many factors could cause the actual results performances or achievements of the

Company to be materially different from any future results performances or achievements. Significant factors

that could make a difference to the Company’s operations include domestic and international economic

conditions changes in government regulations tax regime and other statutes

• None of VRL logistics ltd or any of its affiliates advisors or representatives shall have any liability whatsoever

(in negligence or otherwise) for any loss howsoever arising from any use of this document or its content or

otherwise arising in connection with this document.

• This document does not constitute an offer or invitation to purchase or subscribe for any shares and neither

it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment

whatsoever.

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REVENUE up

by 12.71%

EBITDA up by

39.52%

PAT up by

82.66%

REVENUE up

by 8.88%

EBITDA up by

12.81% PAT up by

40.93%

Consolidated

(INR in millions)

Q1FY 16 Q4 FY15 Q1 FY15 FY 15

REVENUE 4479.01 3973.93 4113.56 16712.01

EBITDA 851.69 610.44 754.95 2804.46

EBIT 628.72 425.58 524.38 1927.86

PBT 525.37 326.64 370.41 1379.02

PAT 353.80 193.69 251.05 912.23

Committed to deliver consistently

PBT up by

60.84%

PBT up by

41.83%

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Goods transport revenue achieved growth of

7.98% q-o-q and12.66% y-o-y.

EBITDA income achieved growth of 35.45% q-o-q

and 6.77% y-o-y.

EBITDA margins increased 3.18% q-o-q and

decreased by 0.87% y-o-y.

EBIT income achieved a growth of 4.15% q-o-q

and 9.31% y-o-y.

EBIT margins decreased 0.46%% q-o-q and

decreased 0.38% y-o-y.

Bus transport revenue achieved growth of

27.62% q-o-q and (1.9%) y-o-y.

EBITDA income achieved growth of 94.56% q-o-q

and 27.51% y-o-y.

EBITDA margins increased by 9.82% q-o-q and

6.58% y-o-y.

EBIT income achieved growth of 104.09% q-o-q

and 47.49% y-o-y.

EBIT margins increased 8.54% q-o-q and 7.63%

y-o-y.

(Rs in millions) Goods Transport

Particulars Q1 2016 Q4 2015 Q1 2015 FY 2015

Revenue 3396.91 3145.75 3015.22 12907.52

EBITDA 534.14 394.335 500.30 2085.10

EBITDA Margin(%) 15.72% 12.54% 16.59% 16.15%

EBIT 422.22 405.41 386.27 1669.84

EBIT Margin(%) 12.43% 12.89% 12.81% 12.94%

(Rs in millions) Bus Transport


Revenue 946.87 741.94 965.17 3315.74

EBITDA 270.35 138.95 212.02 594.95

EBITDA Margin(%) 28.55% 18.73% 21.97% 17.94%

EBIT 215.93 105.80 146.40 362.09

EBIT margin(%) 22.80% 14.26% 15.17% 10.92%

Performance driven by allround developement

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(Rs in millions) Sale of Power


Revenue 71.01 23.49 64.24 222.18

EBITDA 57.10 8.6 49.28 162.31

EBITDA Margin(%) 80.37% 36.61% 76.71% 73.05%

EBIT 28.56 (42.51) 28.22 48.23

EBIT margin(%) 40.21% (180.97%) 43.94% 21.71%

(Rs in millions) Air charter


Revenue 26.82 28.8 34.92 116.84

EBITDA 0.66 (4.94) 9.17 (4.39)

EBITDA Margin(%) 2.48% (17.15%) 26.26% (3.76%)

EBIT (4.01) (8.42) 4.42 (23.39)

EBIT margin(%) (14.95%) (29.24%) 12.65% (20.02%)

Performance driven by allround developement

Sale of Power revenue achieved growth of

202.30% q-o-q and 10.54% y-o-y.

EBITDA income achieved growth of 563.95%

q-o-q and 15.87% y-o-y.

EBITDA margins increased 43.76% q-o-q and

3.66% y-o-y.

EBIT income achieved a growth of 167.31% q-o-q

and 1.20% y-o-y.

EBIT margins increased 220.84% q-o-q

and decreased by 3.72% y-o-y.

Air Charter revenue decreased by 6.88% q-o-q

and 23.20% y-o-y.

EBITDA income increased by 113.36% q-o-q and

decreased 92.80% y-o-y.

EBITDA margins increased by 19.61% q-o-q and


EBIT income increased by 52.38% q-o-q and


EBIT margins increased by 14.29% q-o-q and


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75.84%

21.14%

1.59%

0.60%

0.83%

Q1 FY 16

Goods Transport Bus Trasport Sale of Power

Air charter Others

73.30%

23.46%

1.56%

0.85% 0.83%

Q1 FY 15

Goods Transport Bus Transport

Sale of Power Aircharter

Others

Segmentwise contribution to total revenue

Goods Transport (75.84%) is the key contributor to total revenue

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Introduction of bio diesel (12.15% of total qty in Q1 2016). Results to be

studied and increased gradually.

Addition of 21 locations to the existing network of Goods Transport

business.

Our first International foray by opening branch in Kathmandu, NEPAL

Addition of 56 goods transport vehicles.

Consolidation of bus transport fleet. Concentration on premium routes

Periodical review of freight rates

Focus on growth in the North and the Eastern parts of the country.

India Bus Award for achieving excellence in Private Bus transport service

in both Pan-India and South zone

Strong emphasis on growth, by building upon the existing infrastructure

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Goods transportation fleet includes :

3701 owned vehicles as of Q1 2016.

1298 (35%) vehicles less than 5 years old.

2420 (65%) of vehicles are debt free

1430 (39%) of vehicles book value is Re 1

Average age of goods fleet is 8.3 years

Wide range of vehicles with carrying capacity

from 1 ton to 32 tons

Passenger transportation fleet includes

373 owned vehicles

342 (92%) vehicles are less than 5 years old

124(33%) of vehicles are debt free

Average age of Passenger vehicles is 4.2 years

Significance of own vehicles

Enables us to significantly reduce hiring and

operational costs

Enables us cover a large no of routes reduce

dependence on third party hired vehicles

Enables better control over time bound delivery

enhancing service quality and ensuring reliable

quality services

Passenger transportation vehicles enables us to

provide safe on time comfortable travel

experience

Total of 4074 owned vehicles provides greater leverage in terms of pricing and service

NOTE:

(1) Small vehicles are defined as vehicles with carrying capacity up to 2500 kilograms.

(2) Light commercial vehicles are defined as vehicles with carrying capacity between

2500 kilograms and 7500 kilograms.

(3) Heavy commercial vehicles are defined as vehicles with carrying capacity of more

than 7500 kilograms.

(4) Used for transportation of automobiles.

(5) Used for transportation of liquid.

(6) Cranes are predominantly used for internal operations.

As of

Small

Vehicle

(1)

Light

Commercial

Vehicle(2)

Heavy

Commercial

Vehicles(3)

Car

Carrier(

4)

Tanker(

5)

Cranes(

6)

Total

Vehicles

Owned

BUSESTOTAL

FLEET

31-Mar-11 171 892 1575 0 7 10 2655 296 2951

31-Mar-12 139 883 1916 102 27 12 3079 423 3502

31-Mar-13 122 883 1941 102 27 13 3088 460 3548

31-Mar-14 122 882 2210 102 23 13 3352 477 3829

31-Mar-15 120 975 2423 102 16 13 3649 375 4024

30-June-16 120 988 2461 102 17 13 3701 373 4074

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Profit & Loss Statement (Rs in millions)

Quarter ended Year ended

30.06.2015 31.03.2015 30.06.2014 31.03.2015

(Audited) % of total

revenue (Audited)

% of total

revenue (Audited)

% of total

revenue (Audited)

% of total

revenue

Income from operations

- Net income from operations 4441.61 3939.98 4079.55 16562.28

- Other operating income 37.40 33.95 34.01 149.72

Total income from operations (net) --- (1) 4479.01 100% 3973.93 100% 4113.56 100% 16712.01 100%

Expenses

- Operating expenses 3061.50 68% 2803.01 71% 2878.18 70% 11793.77 71%

- Employee benefits expense 536.40 12% 523.12 13% 448.62 11% 1979.9 12%

- Depreciation and amortisation expense 222.97 5% 184.86 5% 230.57 6% 876.6 5%

- Other expenses 48.92 1% 58.24 1% 47.92 1% 209.6 1%

- Prior period items - - - 0.88 0%

Total expenses ------ (2) 3869.78 86% 3569.22 90% 3605.28 88% 14860.8 89%

Profit from operations before other income

finance costs and exceptional item (1-2) 609.23 14% 404.71 10% 508.28 12% 1851.25 11%

- Other income 19.49 0% 20.88 1% 16.10 0% 76.60 0%

Profit from ordinary activities before finance costs

and exceptional item (3+4) 628.72 14% 425.58 11% 524.38 13% 1927.86 12%

EBITDA 851.69 19% 610.44 15% 754.95 18% 2804.46 17%

- Finance costs 103.35 2% 136.11 3% 153.98 4% 586 4%

Profit from ordinary activities after finance costs

but before exceptional item (5-6) 525.37 12% 289.48 7% 370.41 9% 1341.86 8%

- Exceptional item (Refer note 4) 37.16 1% - 37.16 0%

Profit from ordinary activities before tax (7+8) 525.37 12% 326.64 8% 370.41 9% 1379.02 8%

Tax expense 171.567 4% 132.95 3% 119.35 3% 466.79 3%

Net profit for the period (9-10) 353.80 8% 193.69 5% 251.05 6% 912.23 5%

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Paid-up equity share capital (face value of Rs 10/- each) 9,124.35 8,553.62 8,553.62 8,553.62

Reserves excluding Revaluation Reserves as per balance

sheet of previous accounting year 27,065.27

Earnings per share (not annualised) ( Rs)

Basic 3.94 2.26 2.94 10.66

Diluted 3.94 2.26 2.94 10.66

Profit & Loss Statement (Rs in millions)


30.06.2015 31.03.2015 30.06.2014 31.03.2015

(Unaudited)

(Refer note 7)

(Audited)

(Refer note 7)

(Audited)

(Refer note 7)

(Audited)

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Particulars (Rs in millions)


30.06.2015

(Unaudited)

% of total

revenue

31.03.2015

(Audited)

% of total

revenue30.06.2014

(Audited)

% of total

revenue

31.03.2015

(Audited)

% of total

revenue

1. Segment revenue

a) Goods transport 3,396.91 75.84% 3,145.75 79.16% 3,015.22 73.30% 12,907.52 77.24%

b) Bus operations 946.87 21.14% 741.94 18.67% 965.17 23.46% 3,315.74 19.84%

c) Sale of power 71.01 1.59% 23.49 0.59% 64.24 1.56% 222.18 1.33%

d) Air chartering service 26.82 0.60% 28.80 0.72% 34.92 0.85% 116.84 0.70%

e) Un-allocable revenue 37.40 0.83% 33.95 0.85% 34.01 0.83% 149.72 0.90%

Total 4,479.01 100.00% 3,973.93 100.00% 4,113.56 100.00% 16,712.01 100.00%

Less: Inter segment revenue - - - -

Net Sales/Income from operations 4,479.01 3,973.93 4,113.56 16,712.01

2. Segment results

(Profit before tax and finance costs)

a) Goods transport 422.21 12.43% 405.41 12.89% 386.27 12.81% 1,669.84 12.94%

b) Bus operations 215.93 22.80% 105.80 14.26% 146.40 15.17% 362.09 10.92%

c) Sale of power 28.55 40.21% (42.43) (180.65%) 28.23 43.94% 48.23 21.71%

d) Air chartering service (4.09) (15.24%) (8.42) (29.25% 4.42 12.65% (23.39) (20.02%)

Total 662.61 14.92% 460.36 11.68% 565.32 13.86% 2,056.76 12.42%

Less: Unallocable (expenditure)/revenue:

a) Finance costs (103.35) (136.11) (153.98) (586.00)

b) Other expenditure (net of other

income)

(33.89) (34.77) (40.94) (128.90)

c) Exceptional item (Refer note 4) - 37.16 - 37.16

Profit before tax 525.37 326.64 370.41 1,379.02

3. Capital employed

(Segment assets - Segment liabilities)

a) Goods transport 4,455.69 4,487.62 3,941.53 4,487.62

b) Bus operations 1,210.68 1,234.23 1,441.49 1,234.23

c) Sale of power 1,276.85 1,252.95 1,386.73 1,252.95

d) Air chartering service 349.24 354.90 373.45 354.90

e) Un-allocable (2,278.34) (3,767.81) (3,988.97) (3,767.81)

Total 5,014.12 3,561.89 3,154.23 3,561.89

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Sr. No. Particulars Quarter ended Year ended

30.06.2015 31.03.2015 30.06.2014 31.03.2015

(Unaudited)

(Refer note 7)

(Audited)

(Refer note 7)

(Audited)

(Refer note 7)

(Audited)

PART II

APARTICULARS OF SHAREHOLDING (Refer note 5)

1 Public shareholding

- Number of shares 27,763,495 - - -

- Percentage of shareholding 30.43% - - -

2 Promoters and Promoter Group Shareholding

a) Pledged/Encumbered

-Number of shares - - - -

-Percentage of shares (as a % of the total shareholding

of promoter and promoter group) - - - -

-Percentage of shares (as a % of the total share capital

of the Company) - - - -

b) Non-encumbered

-Number of shares 63,480,000 85,536,162 85,536,162 85,536,162

-Percentage of shares (as a % of the total shareholding

of promoter and promoter group) 100.00% 100.00% 100.00% 100.00%

-Percentage of shares (as a % of the total share capital

of the Company) 69.57% 100.00% 100.00% 100.00%

Particulars Quarter ended 30.06.2015

B INVESTOR COMPLAINTS (Refer note 5)

Pending at the beginning of the quarter -

Received during the quarter 11,078

Disposed off during the quarter 11,078

Remaining unresolved at the end of the quarter -

THANKING YOU

For further discussions/queries Please contact :

Sunil Nalavadi

Chief Financial Officer

+91 93425 59298

[email protected]

mailto:[email protected]

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Earnings Presentation [Company Update]

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